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The term APR denotes Annual Percentage Rate which in simple terms means the interest rate at which money is borrowed on credit. Thus, APR reflects annual cost of borrowing money and to an individual it acts as a common base on which different types of credits can be compared. For example, in case of loans or credit cards, one can compare the APRs of the various available options to identify which one is the cheapest.

APRs can be either nominal or Effective. Nominal APR refers to the interest rate which is primarily charged on the loan. E.g. 10% or 15%. Effective APR on the other hand includes all additional fees that are added to the balance loan amount.

Talking about credit cards, the last decade has seen it becoming a way of life, something that a person can’t do without. Especially in case of students, credit cards are an easy and fast way to deal with payments for utilities, shopping, dining out, traveling sudden emergency services, to almost every aspect of his/her life. Low APR credit cards are offered to students so that they can meet their day to day expenses at low cost while they are studying and also facilitate a start for a healthy credit history.

Almost all the banks offer low APR student credit cards. Generally they come in various schemes, commonly offering a 0% APR in the first 6 months or the 1st year which goes on to a regular, but low APR rate from the next year or so. In the increased competitive market scenario where all the banks are fighting for increased market share, low APR credit cards for students are seeing a host of additional benefits and services offered as an effort towards providing a more attractive and beneficial student credit card. These various benefits commonly include:

* Reduction in the APR in case of regular and timely repayment along with staying below the credit limit

* Percentage of Cash back on purchases ( Applicable ones such as supermarkets, fuel, medicine shops, convenience stores and other utilities)

* Reward points on every purchase like those of books, gifts, stationary, dining and shopping

* Air miles reward which students can redeem while traveling

* Facility of credit amount transfer from other cards to this low APR one

* Other facilities in case of Student Visa, internet connection, etc

Thus, if a student wants to make life easier and exciting, has good payment behavior and wants to start building up a good credit history, then low APR student credit cards are the way to go.